“You have 4,500 points on your XYZ Loyalty Program. Claim them now or lose them forever!” A few days back, I received this message on my mobile. I spent the better part of five minutes to remember what program was the message talking about.
And when I did search the never-ending collection of messages and found at least 7 different loyalty cards in my wallet, I was none the wiser about how I can use it. Does this story remind you of your own experiences? I bet it does.
In an effort to retain old customers and to attract newer ones, businesses do issue membership cards and dole out “reward points” for every purchase made or service used. A good program can help generate a lot of revenue for a business.
It is found that 82.4% customers are more likely to shop at stores that offer some bonuses and privileges. Loyalty program members generate as much as 18% more revenue than non-members. 73% clients recommend businesses that have a strong reward scheme.
However, on the flip side, an average customer is part of around 14 different loyalty programs and unless he keeps track of every such scheme, most of these points will go waste. However, if used properly, the same points would have helped us save a lot of money.
Why are most loyalty programs far from ideal?
There are around $100 billion unclaimed loyalty points every year. Unused reward points that eventually get expired, along with the annoyingly regular promotional messages and emails, usually create a not-so-positive perception of the scheme in the eyes of the customer. Moreover, unclaimed rewards become a financial liability on the business.
Why do customers lose interest in loyalty programs? A good program is more than just giving out free points, it should drive redemption behavior. Also many customers are unaware of how a particular loyalty program works and an over-complicating scheme holds them back from using the program to its potential.
Another major reason is the siloed nature of loyalty programs where a customer can use his points only to buy products and services of the business offering the program. The points have an expiration date and if the program member fails to redeem them before that time, they expire.
How to get maximum from loyalty programs?
A better alternative to a multitude of loyalty programs would be a single platform that makes it easy to use all accumulated reward points in real economies.
Korea-based M2O seeks to create a global integrated mileage and reward points program. Adhering to its motto “Mileage to Opportunity,” this project is using the Blockchain technology that will convert all of a customer’s mileage and points accrued from various loyalty programs into a single token - M2O Coin.
These tokens will work as universal integrated loyalty points. Without any expiration date they can be used across the network to buy products and services - from clothes to a car - thereby creating a seamless experience for the customer. M2O points aren’t simply reward points but cash with real value.
By using FinTech and blockchain technology, assisted by Big Data, M2O will bring in points and mileages from all major businesses around the world onto a single platform. This aims to hugely benefit not only the customers but also all the businesses in the affiliated network.
This is because all companies in the network gain access to customers from other businesses to whom they can offer their services to. This will lead to lowered marketing costs. The business can then use that revenue to provide great value to its consumers.
With M2O, I, as a customer, get an opportunity to collect all my reward points from the various loyalty programs into a single wallet and use them to buy exciting stuff from around the world. I can use these points seamlessly converting them into crypto tokens, spending on everyday needs or even exchanging for cash. Isn’t it the best thing that has ever happened to a customer loyalty program?
About the project
M2O aims to integrate the existing mileage and point markets and build a global membership services platform on the blockchain. The M2O platform converts the mileage and points accrued from different loyalty programs from many companies into global integration points with no expiration date.
These points now have currency value, so that you can use them anywhere like cash. M2O is creating a platform that will benefit both consumers and businesses.
The platform will allow customers to exchange their reward points with tokens that can be used as a mode of payment to buy goods and services. You can even exchange these tokens for cash.
The M2O global integrated platform will allow customers to invest their converted M2O coins through a public cryptocurrency exchange. The project also plans to open its own dedicated premium shopping mall that will accept Payments through M2O Pay so that you can use your reward points to shop at these malls.
On October 29 M2O project starts its Initial Coin Offering that will last till November 23. You’re welcome to join it! To know more about the project, please visit its website, or follow it on Facebook, Twitter or join the official Telegram group.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
